Former WWE wrestler charged in Mississippi's welfare fraud scandal
Apr. 20—JACKSON — A grand jury in Mississippi has indicted former professional wrestler Ted "Teddy" DiBiase Jr. on federal charges of wire fraud, money laundering and theft in connection to the state's welfare scandal, according to court documents unsealed Thursday.
The indictment alleges that DiBiase, the son of the famous WWE wrestler known as "The Million Dollar Man," knowingly conspired with the former head of the state's welfare agency and two leaders of nonprofit organizations to divert federal funds meant for the state's poorest residents for his own personal benefit.
DiBiase allegedly used the federal funds to buy a vehicle and a boat, and for the down payment on the purchase of a house, among other expenditures, the Department of Justice said in a news release.
Scott Gilbert, DiBiase's attorney, told the Daily Journal in a statement that today was a "good day" for his client because he now has a chance to publicly fight back against the charges prosecutors, politicians and investigators have levied against him.
"We are confident that when this process is finished, it will be clear that the government's theory is misguided and that their allegations cannot be substantiated, as they pertain to Teddy DiBiase," Gilbert said.
The indictment accuses DiBiase of coordinating with John Davis, the former director of the state Department of Human Services, to steer funds from the Emergency Food Assistance Program and the Temporary Assistance for Needy Families program to two nonprofit organizations — the Tupelo-based Family Resource Center of North Mississippi and Mississippi Community Education Center.
Court documents state that that DiBiase's two companies he owened — Priceless Ventures and Familie Orientem — entered into "sham contracts" with the two nonprofits.
Prosecutors also state in the indictment that in 2018, the FRC directed nearly $1.7 million of federal funds to DiBiase's two companies for "leadership outreach services" and emergency food assistance.
Representatives of the FRC have previously said the Tupelo nonprofit did not commit any wrongdoing.
Christi Webb, the founder of the FRC; Nancy New, the founder of the MCEC; and Davis have all previously pleaded guilty to federal charges.
Teddy DiBiase Jr.'s brother, Brett DiBiase, pleaded guilty to a federal conspiracy in March and state charges and was also the first person to plead guilty to state charges in 2020.
No one that has pleaded guilty to federal or state charges in connected with the welfare scandal has served any prison time.
State Auditor Shad White in 2020 revealed that he provided information to state prosecutors that led to the indictment of six officials connected to a scheme to mismanage funds from the TANF program. Nearly all of those six defendants have pleaded guilty.
"Prosecutors decide whom to charge with a crime, and we're grateful to see them continuing to advance this case," White said in a statement. "We will continue to support their efforts with the evidence that our investigators and federal investigators have uncovered."
The indictment, an acknowledgment by a grand jury that sufficient evidence exists that a crime could have occurred, charges DiBiase with six counts of wire fraud, one count of conspiracy to commit wire fraud and theft, two counts of theft of federal funds and four counts of money laundering.
It's unclear when court officials will set a trial date for the defendant. If convicted of the charges by a jury, DiBiase could face a maximum of 175 years in prison.
